However, the Ministry of Micro, Small and Medium Enterprises (MSME) supplements the efforts of State Governments by implementing a number of schemes for the development of khadi, village industries and coir through Khadi and Village Industries commission (KVIC) and Coir Board.These include a major credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) being implemented through Banks since 2008-09 with KVIC as nodal agency at the national level for generating employment in the Country by setting up of micro-enterprises in the non-farm sector.
Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc., the margin money subsidy is 35% in rural areas and 25% in urban area.
For the holistic development and promotion of khadi and village industries in the country, the Government of India has established a statutory body #
The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. Under PMEGP, a total of 2.73 lakh micro enterprises have been assisted with a margin money subsidy of Rs. 5223.87 crore providing employment to an estimated 24.06 lakh persons since its inception till June 2014.
This information was given by the Union Minister of Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha.
Ministry of MSMEs